GENERAL ASSEMBLY OF NORTH CAROLINASESSION 2009H 1HOUSE BILL 1313
Short Title: Regulate Public Adjusters.-AB (Public)Sponsors: Representatives Goforth, Wray (Primary Sponsors); and Lucas.Referred to: Insurance, if favorable, Finance.April 9, 2009
*H1313-v-1*
A BILL TO BE ENTITLED1AN ACT TO PROVIDE FOR MEANINGFUL REGULATION OF INSURANCE PUBLIC2ADJUSTERS.3The General Assembly of North Carolina enacts:4
SECTION 1.
Chapter 58 of the General Statutes is amended by adding a new5Article to read:6"Article 33A.7"Public Adjusters.8"
§ 58-33A-1. Purpose and scope.
9This Article governs the qualifications and procedures for the licensing of public adjusters.10It specifies the duties of and restrictions on public adjusters, which include limiting their11licensure to assisting insureds in first-party claims.12"
§ 58-33A-5. Definitions.
13(1) Business entity. – A corporation, association, partnership, limited liability14company, limited liability partnership, or other legal entity.15(2) Catastrophic incident. – As defined in the National Response Framework,16any natural or man-made incident, including terrorism, that results in17extraordinary levels of mass casualties, damage, or disruption severely18affecting the population, infrastructure, environment, economy, national19morale, and/or government functions. A catastrophic incident shall be20declared by the President of the United States or the Governor of the state or21district in which the disaster occurred. If state and local resources are22insufficient, the Governor may ask the President of the United States to23make such a declaration.24(3) Fingerprints. – An impression of the lines on the finger taken for purpose of 25identification. The impression may be electronic or in ink converted to26electronic format.27(4) Home state. – The District of Columbia and any state or territory of the28United States in which the public adjuster's principal place of residence or29principal place of business is located. If neither the state in which the public30adjuster maintains the principal place of residence nor the state in which the31public adjuster maintains the principal place of business has a substantially32similar law governing public adjusters, the public adjuster may declare33another state in which it becomes licensed and acts as a public adjuster to be34the home state.35(5) Individual. – A natural person.36(6) Person. – An individual or a business entity.37
General Assembly of North Carolina Session 2009
Page 2 House Bill 1313-First Edition(7) Public adjuster. – Any person who, for compensation or any other thing of 1value on behalf of the insured, does any of the following:2a. Acts or aids, solely in relation to first-party claims arising under3insurance contracts that insure the real or personal property of the4insured, on behalf of an insured in negotiating for, or effecting the5settlement of, a claim for loss or damage covered by an insurance6contract.7b. Advertises for employment as an public adjuster of insurance claims8or solicits business or represents himself or herself to the public as a9public adjuster of first-party insurance claims for losses or damages10arising out of policies of insurance that insure real or personal11property.12c. Directly or indirectly solicits business, investigates or adjusts losses,13or advises an insured about first-party claims for losses or damages14arising out of policies of insurance that insure real or personal15property for another person engaged in the business of adjusting16losses or damages covered by an insurance policy for the insured.17(8) Uniform individual application. – The current version of the NAIC Uniform18Individual Application for resident and nonresident individuals.19(9) Uniform business entity application. – The current version of the NAIC20Uniform Business Entity Application for resident and nonresident business21entities.22"
§ 58-33A-10. License required.
23(a) A person shall not act or hold himself or herself out as a public adjuster in this State24unless the person is licensed as a public adjuster in accordance with this Article.25(b) A person licensed as a public adjuster shall not misrepresent to a claimant that he or26she is an adjuster representing an insurer in any capacity, including acting as an employee of 27the insurer or acting as an independent adjuster unless so appointed by an insurer in writing to28act on the insurer's behalf for that specific claim or purpose. A licensed public adjuster is29prohibited from charging that specific claimant a fee when appointed by the insurer and the30appointment is accepted by the public adjuster.31(c) A business entity acting as a public adjuster is required to obtain a public adjuster32license. Application shall be made using the uniform business entity application. Before33approving the application, the Commissioner shall find all of the following:34(1) The business entity has paid the fees set forth in G.S. 58-33-125.35(2) The business entity has designated a licensed public adjuster responsible for36the business entity's compliance with the insurance laws and regulations of 37this State.38(d) Notwithstanding subsections (a) through (c) of this section, a license as a public39adjuster shall not be required of any of the following:40(1) An attorney-at-law admitted to practice in this State, when acting in his or41her professional capacity as an attorney.42(2) A person who negotiates or settles claims arising under a life or health43insurance policy or an annuity contract.44(3) A person employed only for the purpose of obtaining facts surrounding a45loss or furnishing technical assistance to a licensed public adjuster, including46photographers, estimators, private investigators, engineers, and handwriting47experts.48(4) A licensed health care provider, or employee of a licensed health care49provider, who prepares or files a health claim form on behalf of a patient.50(5) A person who settles subrogation claims between insurers.51
General Assembly of North Carolina Session 2009
House Bill 1313-First Edition Page 3"
§ 58-33A-15. Application for license.
1(a) A person applying for a public adjuster license shall apply to the Commissioner on2the appropriate uniform application or other application prescribed by the Commissioner.3(b) The applicant shall declare under penalty of perjury and under penalty of refusal,4suspension, or revocation of the license that the statements made in the application are true,5correct, and complete to the best of the applicant's knowledge and belief.6(c) In order to make a determination of license eligibility, the Commissioner may7require fingerprints of applicants and submit the fingerprints and the fee required to perform the8criminal history record checks to the State Bureau of Investigation and the Federal Bureau of 9Investigation (FBI) for state and national criminal history record checks; the Commissioner10shall require a criminal history record check on each applicant in accordance with this Article.11The Commissioner shall require each applicant to submit a full set of fingerprints in order for12the Commissioner to obtain and receive National Criminal History Records from the FBI13Criminal Justice Information Services Division.14(1) The Commissioner may contract for the collection, transmission, and15resubmission of fingerprints required under this section. If the Commissioner16does so, the fee for collecting, transmitting, and retaining fingerprints shall17be payable directly to the contractor by the person. The Commissioner may18agree to a reasonable fingerprinting fee to be charged by the contractor.19(2) The Commissioner may waive submission of fingerprints by any person that20has previously furnished fingerprints and those fingerprints are on file with21the Central Repository of the NAIC or the NAIC's affiliates or subsidiaries.22(3) The Commissioner may submit electronic fingerprint records and necessary23identifying information to the NAIC, its affiliates, or subsidiaries for24permanent retention in a centralized repository. The purpose of such a25centralized repository is to provide state insurance regulators with access to26fingerprint records in order to perform criminal history record checks.27"
§ 58-33A-20. Resident license.
28(a) Before issuing a public adjuster license to an applicant under this section, the29Commissioner shall find that the applicant meets all of the following criteria:30(1) Is eligible to designate this State as his or her home state or is a nonresident31who is not eligible for a license under G.S. 58-33A-35.32(2) Has not committed any act that is a ground for denial, suspension, or33revocation of a license as set forth in G.S. 58-33A-45.34(3) Is trustworthy, reliable, and of good reputation, evidence of which may be35determined by the Commissioner.36(4) Is financially responsible to exercise the license and has provided proof of 37financial responsibility as required in G.S. 58-33A-50.38(5) Has paid the fees set forth in G.S. 58-33-125.39(6) Maintains an office in the home state of residence with public access by40reasonable appointment and/or regular business hours. This includes a41designated office within a home state of residence.42(b) In addition to satisfying the requirements of subsection (a) of this section, an43individual shall:44(1) Be at least 18 years of age; and45(2) Have successfully passed the public adjuster examination.46(c) The Commissioner may require any documents reasonably necessary to verify the47information contained in the application.48"
§ 58-33A-25. Examination.
49(a) An individual applying for a public adjuster license under this act shall pass a50written examination unless exempt pursuant to G.S. 58-33A-30. The examination shall test the51
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